[Quote No.26004] Need Area: Money > Invest "One of the worst mistakes anyone can make [in share investing] is to hold on blindly [to a stock] and refuse to admit that his judgement has been wrong. [The problem can then be compounded if the investor sells] …something he has a profit in to protect something in which he has a loss. Since the good stock usually has gone down least, or may even show a profit, it is psychologically easy to let go. With a bad stock the loss is likely to be heavy and the impulse is to hold on to it in order to recover what has been lost. Actually, the procedure one should follow is to sell the bad stock and keep the good stock. With rare exceptions, stocks are high because they are good, and stocks are low because they are of doubtful value." - Bernard Baruch(1870 – 1965), Famous American financier, stockbroker, share market investor, statesman. He wrote two autobiographies - the first about his Wall Street career called, ‘Baruch - My Own Story’ and a second about his years in public service called, ‘Baruch – The Public Years’.
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[Quote No.26005] Need Area: Money > Invest "...There are a number of things I have learned from my own experience [in stock market investing], which might be worth listing for those who are able to muster the necessary self-discipline:
- Always keep a good part of your capital in a cash reserve. Never invest all your funds;
- Don’t try to be jack of all investments. Stick to the field you know best;
- Before you buy a security, find out everything you can about the company, its management and competitors, its earnings and possibilities for growth;
- Don’t try to buy at the bottom and sell at the top. This can’t be done – except by liars;
- Don’t try to buy too many different securities. Better have only a few investments which can be watched;
- Learn how to take your losses quickly and cleanly. Don’t expect to be right all the time. If you have made a mistake, cut your losses as quickly as possible;
- Make a periodic reappraisal of all your investments to see whether changing developments have altered their prospects;
- Study your tax position to know when you can sell to greatest advantage.
These ‘rules’ mainly reflect two lessons that experience has taught me – getting the facts of a situation before acting is of crucial importance, and that getting these facts is a continuous job, which requires eternal vigilance...
In evaluating individual companies three main factors should be examined.
Firstly, there are the real assets of a company, the cash it has on hand over its indebtedness and what its physical properties are worth.
Second, there is the franchise to do business that a company holds, which is another way of saying whether or not it makes something or performs a service that people want or must have…it is not too difficult to determine the things people must have if they are to continue to live. Such fields usually open up investments, which are likely to hold their value over the long run.
Third and most important, is the character and brains of management. I’d rather have good management and less money than poor managers with a lot of money. Poor managers can ruin even a good proposition. The quality of the management is particularly important in appraising the prospects of future growth. Is the management inventive and resourceful, imbued with determination to keep itself young in a business way? Or does it have a sit-and-die attitude?
...These basic economic facts about various enterprises, to repeat, must be checked and rechecked constantly. Sometimes I have made mistakes and yet, by abandoning my position in time, still was able to emerge with a net profit." - Bernard Baruch(1870 – 1965), Famous American financier, stockbroker, share market investor, statesman. He wrote two autobiographies - the first about his Wall Street career called, ‘Baruch - My Own Story’ and a second about his years in public service called, ‘Baruch – The Public Years’.
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[Quote No.26007] Need Area: Money > Invest "In [investment] speculation, our emotions are constantly setting traps for our reasoning powers. It is far more difficult, for example, to know when to sell a stock than when to buy. Men find it equally hard to take either a profit or a loss. If a stock has gone up, a man wants to hold on to it in anticipation of a further rise. If a stock has gone down, he tends to hold on to it until an upward turn comes along so he will at least be even. The sensible course is to sell while the stock still is rising or, if you have made a mistake, to admit it immediately and take your loss. Some people, after selling, bedevil themselves with thoughts of ‘if only I had done this’. To do this is both silly and demoralizing." - Bernard Baruch(1870 – 1965), Famous American financier, stockbroker, share market investor, statesman. He wrote two autobiographies - the first about his Wall Street career called, ‘Baruch - My Own Story’ and a second about his years in public service called, ‘Baruch – The Public Years’.
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[Quote No.26008] Need Area: Money > Invest "No speculator can be right all the time. In fact, if a speculator [investor] is correct half of the time he is hitting a good average. Even being right three or four times out of ten should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong." - Bernard Baruch(1870 – 1965), Famous American financier, stockbroker, share market investor, statesman. He wrote two autobiographies - the first about his Wall Street career called, ‘Baruch - My Own Story’ and a second about his years in public service called, ‘Baruch – The Public Years’.
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[Quote No.26009] Need Area: Money > Invest "In my younger days I heard someone, I forget who, remark [in share market investing], ‘sell to the sleeping point.’ That is a gem of wisdom of the purest ray serene. When we are worried it is because our subconscious mind is trying to telegraph us some message of warning. The wisest course is to sell to the point where one stops worrying." - Bernard Baruch(1870 – 1965), Famous American financier, stockbroker, share market investor, statesman. He wrote two autobiographies - the first about his Wall Street career called, ‘Baruch - My Own Story’ and a second about his years in public service called, ‘Baruch – The Public Years’.
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[Quote No.26010] Need Area: Money > Invest "I have found it wise...to periodically turn into cash most of my [share market] holdings and virtually retire from the market [when optimism is over-done]. No general keeps his troops fighting all the time; nor does he go into battle without some part of his forces held back in reserve...By maintaining a large cash reserve, I have been in a position to take advantage of unforeseen opportunities as they developed." - Bernard Baruch(1870 – 1965), Famous American financier, stockbroker, share market investor, statesman. He wrote two autobiographies - the first about his Wall Street career called, ‘Baruch - My Own Story’ and a second about his years in public service called, ‘Baruch – The Public Years’.
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[Quote No.26011] Need Area: Money > Invest "What is the man or woman with modest savings who is simply looking for a fair return on his or her savings and who cannot give full time to a study of investments? My advice to such persons is to seek out some trusted investment counselor. The emergence of this new profession of disinterested and careful investment analysts, who have no allegiance or alliances and whose job is to judge a security on its merits, is one of the more constructive and healthy developments of the last half-century." - Bernard Baruch(1870 – 1965), Famous American financier, stockbroker, share market investor, statesman. He wrote two autobiographies - the first about his Wall Street career called, ‘Baruch - My Own Story’ and a second about his years in public service called, ‘Baruch – The Public Years’.
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[Quote No.26374] Need Area: Money > Invest "Dividend imputation is an arrangement, for example in Australia, that eliminates the double taxation of dividends. The specifics of it changes and therefore should be checked with your accountant. In general it means, for example: - if a company makes a profit of $100. It pays tax of $30 leaving $70 to distribute. The shareholder receives a dividend of $70, with a franking credit of $30. The shareholder must include the $70 and the $30 in his or her assessable income and pay tax on the full $100. However a tax credit of $30 applies. The effect of the credit is that tax will be paid out but only at a rate equal to the shareholder's tax rate less 30%. If they are eligible to pay less than 30%, for instance 20%, then less 30% means they get a 10% rebate. [A term that is sometimes used is the ‘grossed-up dividend’. This equals the cash received plus the franking credits. (in the above example $70 cash plus $30 franking credit) Because the corporate tax rate in Australia is 30 per cent, the maximum imputation credit attached to a dividend will be 30 per cent of the grossed-up dividend. If a dividend has an attached franking credit at the 30 per cent company tax rate it is referred to as ‘fully franked’. Sometimes, depending on how much tax a particular company has paid on its profits, the ‘franking rate’ will fall below the 30 per cent mark and investors will only receive a partially franked dividend.]" - UnknownAuthor's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.26415] Need Area: Money > Invest "The currency carry trade is a common trading strategy used in the foreign exchange [FX] market. Basically it involves borrowing in a country where the interest rate [and often the economy] is low or falling and investing that money in a country where the interest rate [and often the economy] is high or rising. The difference between the borrowing and the investing rates provides the profit in the trade. Sometimes the money borrowed in the low interest country is invested in the share market of a country that has a booming economy and share market. When the economy and share market slows, these investors sell their investments and pay off their loans. Since the loans are denominated in the low interest county's currency, the demand for that currency increases and the currency goes up." - unknownAuthor's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.26570] Need Area: Money > Invest "I hate and fear borrowing. [as all sensible people do]...I like to keep a lot of financial fat under my belt. There is nothing that can take the place of cash. The overwhelming majority of business problems (and so many recent failures) result from businessmen extending themselves too far [into debt]. There is definitely a place – and a need – for the use of credit in business. However, I have always believed that the [business and] businessman who uses credit the most sparingly is the one who has the greatest chance for achieving success." - J. Paul GettyAmerican oil industrialist, philanthropist and at one time the richest man in the world. From his autobiography, ‘As I See It’.Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.26618] Need Area: Money > Invest "It's counterintuitive but when people feel richer because the economy is booming, assets from real estate to shares are rising, business investment is rising to meet the need for additional capacity for increased domestic and export volumes, more people have jobs, and retail sales are high, it is time to be cautious. Why? Because at these times people forget about risk and start to believe the future will always be this good and borrow because their current budgets allow it. When there are unexpected difficulties in the domestic or global economy or the government starts to slow the economy's debt fuelled growth and inflation by raising interest rates people find it harder to service their debts and meet their other costs of living. They then try to get pay rises which if successful are then passed on to consumers through price rises and the inflationary spiral worsens. This forces the government to raise interest rates again and suddenly people spend less, companies sell less and therefore start cutting back, unemployment rises and so shares of these companies fall and demand and therefore the prices of real estate fall. Eventually when inflation is under control the government lowers interest rates and stimulates the economy with tax relief, etc starting the cycle again. While it is simplified, this cycle of excessive optimism and then excessive pessimism is called the business cycle. In many ways people are helped if they see the economy like the cycles of the seasons with spring and summer growth followed by autumn and winter slow-downs and therefore plan accordingly." - UnknownAuthor's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.26701] Need Area: Money > Invest "[When the share market loses ground, you might wonder whether it would be wise to lower your stock holdings. Those investors who follow technical analysis of the charts try to determine that the trend has turned down using indicators like the two below.]
The first one is the 20-month [600 day] moving average, which measures the average closing price for the past 20 months and then plots it as a line on a chart...In 2000, the S&P closed below the 20-month in November and then proceeded to drop another 40 percent. Had you lowered your equity holdings in November when the 20-month was broken, you would have saved yourself a lot of pain.
The second one is the 100-week [700 day] moving average...Should you see the S&P [share market] close below either of these moving averages, you will [perhaps] want to lighten up on your stock holdings and increase your fixed-income holdings. [Supporting evidence for a market likely to fall is if the A-D line, the number of advancing minus falling stocks is falling.]" - Rick PendergraftTwo-time winner of the 'Top Trader' award at Schaeffer's Investment Research.Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.26771] Need Area: Money > Invest "When considering real estate investing, especially in booms and busts, it is useful to consider demand by thinking about housing affordability measures. Housing affordability can be measured in many ways. One way is in proportion to the average household income for the area. One company that works this out and shares this information on its website is Demographia. It rates a country or city's housing market 'affordable' when the cost of an average home is three (or less) times average household income, 'seriously unaffordable' for four times the average and 'seriously unaffordable' for five times. For example in 2007, on average, Australian families are forced to spend 6.1 times their entire household income [before interest charges] to buy a typical home compared with 3.1 times in Canada and 3.6 times in the US." - UnknownAuthor's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image